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Foreigners can legally purchase property in Saudi Arabia starting January 2026 under a groundbreaking new law. Saudi Arabia passed Royal Decree No. (M/14) in July 2025, replacing decades of restrictive foreign ownership regulations and opening designated zones across the Kingdom to international buyers.
If you want to go deeper, you can check our pack of documents related to the real estate market in Saudi Arabia, based on reliable facts and data, not opinions or rumors.
The new Real Estate Ownership Law takes effect in January 2026, allowing both resident and non-resident foreigners to buy residential and commercial properties in specific zones including Riyadh, Jeddah, NEOM, and Red Sea coastal areas.
Property prices range from SAR 1.2M-2.5M in major cities, with rental yields estimated at 5-7% and transaction costs including a 5% real estate tax plus registration fees and agency commissions.
| Key Aspect | Details | Timeline |
|---|---|---|
| Legal Status | Foreigners can buy property in designated zones | Effective January 2026 |
| Property Types | Residential and commercial (freehold/leasehold) | Available from January 2026 |
| Open Areas | Riyadh, Jeddah, NEOM, Red Sea coast | Official zones list pending |
| Restricted Areas | Makkah and Madinah (except special cases) | Permanent restrictions |
| Visa Requirements | No specific visa or residency required | Confirmed for 2026 |
| Price Range | SAR 1.2M-2.5M in major cities | As of September 2025 |
| Transaction Tax | Approximately 5% real estate tax | Standard rate |
Can foreigners legally buy property in Saudi Arabia in 2025?
Foreigners cannot legally buy property in Saudi Arabia in 2025, but they will be able to starting January 2026.
Saudi Arabia passed Royal Decree No. (M/14) in July 2025, which completely overhauls the Kingdom's foreign property ownership laws. This landmark legislation replaces the restrictive 2000 foreign ownership law that previously banned most international buyers from purchasing real estate.
The new Real Estate Ownership Law allows both resident and non-resident foreigners to own property in designated zones across Saudi Arabia. This applies to individuals and companies alike, marking the most significant change to Saudi property regulations in over two decades.
As of September 2025, prospective foreign buyers should prepare for the January 2026 implementation date while monitoring official announcements from the Real Estate General Authority (REGA) regarding specific eligible zones and procedures.
What recent changes in Saudi property laws should buyers know about?
The July 2025 Royal Decree No. (M/14) represents the most dramatic shift in Saudi property law since 2000.
This new legislation completely removes the blanket ban on foreign property ownership that has been in place for 25 years. The law specifically permits non-Saudis, whether individuals or entities, to own and invest in real estate within designated geographic zones.
The Real Estate General Authority (REGA) has 180 days from the law's July 2025 approval to publish the official list of eligible zones and detailed implementation guidelines. This means the complete regulatory framework should be available by early 2026, just as the law takes effect.
Foreign buyers gain access to both freehold and leasehold ownership options, providing flexibility in investment structures. The law also establishes clear registration and compliance procedures through REGA, ensuring transparent and legally protected transactions.
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Are there restrictions on what types of properties foreigners can own?
Foreign buyers can purchase both residential and commercial properties under the new law, with ownership available as freehold or leasehold arrangements.
Residential properties include apartments, villas, townhouses, and other housing units within designated zones. Commercial properties encompass office buildings, retail spaces, warehouses, and mixed-use developments approved for foreign ownership.
The law excludes certain property types and locations from foreign ownership. Makkah and Madinah remain largely restricted, with exceptions only for Muslim natural persons under specific regulations or limited corporate cases.
Industrial properties and specialized government or military-related real estate may face additional restrictions, though the complete list of excluded property types awaits publication by REGA.
Foreigners cannot purchase agricultural land or properties in areas deemed sensitive for national security reasons. The specific zoning maps and detailed property type classifications will be released by regulatory authorities before the January 2026 implementation.
Which areas or cities are open to foreign ownership, and which remain restricted?
Major cities including Riyadh, Jeddah, NEOM, and Red Sea coastal areas will be open to foreign property ownership starting January 2026.
| City/Area | Foreign Ownership Status | Property Types Available |
|---|---|---|
| Riyadh | Open to foreigners | Residential and commercial |
| Jeddah | Open to foreigners | Residential and commercial |
| NEOM | Open to foreigners | Residential, commercial, luxury |
| Red Sea Coast | Open to foreigners | Residential, tourism, commercial |
| Makkah | Restricted (limited exceptions) | Special cases only |
| Madinah | Restricted (limited exceptions) | Special cases only |
| Eastern Province | Status pending official announcement | To be determined |
Do you need a specific visa, residency status, or government permit to purchase property?
No specific visa or residency status is required for foreigners to buy property under the new law.
The legislation explicitly allows both resident and non-resident foreigners to purchase real estate in designated zones. This means tourists, business visitors, expatriate workers, and foreign companies can all potentially own property without needing to establish Saudi residency first.
All property transactions must be registered through the Real Estate General Authority (REGA), which serves as the mandatory government approval and oversight body. This registration process replaces the need for separate purchase permits.
While the Premium Residency program (Saudi Green Card) offers long-term stay benefits, it is not a legal requirement for property ownership under the new rules. However, Premium Residency holders may enjoy streamlined processes or additional benefits.
Foreign companies must meet standard business registration requirements to purchase commercial properties, but no special real estate-specific permits are needed beyond REGA registration.
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What is the official step-by-step process to buy a house as a foreigner?
The property purchase process follows a six-step framework supervised by the Real Estate General Authority (REGA).
- Verify eligibility and zone confirmation: Check that your desired property location appears on REGA's official list of zones open to foreign ownership, which will be published before January 2026.
- Property identification and due diligence: Select your residential or commercial property and conduct thorough inspections, title searches, and legal verification of ownership status.
- Engage licensed representation: Work with a REGA-authorized real estate broker or agency that specializes in foreign buyer transactions and understands the new regulatory requirements.
- Documentation preparation: Compile required documents including valid identification, proof of funds, bank statements, and any additional permits or approvals specified by REGA.
- Contract execution and payment: Sign the purchase agreement, pay applicable taxes and fees (including the 5% real estate transaction tax), and complete the financial transfer through approved channels.
- Registration and title transfer: Complete the official property registration with REGA and obtain your ownership certificate, which provides legal proof of your property rights.
How does someone actually get started if they're interested in buying?
Start by consulting reputable real estate agencies licensed by REGA that specialize in foreign investment transactions.
Look for brokerage firms with proven experience in Riyadh, Jeddah, NEOM, or other high-demand areas that will be open to foreign buyers. These agencies should hold current REGA certification and demonstrate knowledge of the new foreign ownership regulations.
The official "Istithlaa" platform managed by REGA will publish comprehensive guides, approved zone maps, and lists of certified agencies before the January 2026 implementation date. This platform serves as the authoritative source for procedural information.
Prepare your financial documentation early, including proof of funds, bank statements, and identification documents. Consider engaging legal counsel familiar with Saudi real estate law to review contracts and ensure compliance.
Monitor REGA announcements throughout late 2025 for the release of official zone maps, detailed procedures, and any additional requirements that may apply to your specific situation or property type.
Which real estate agencies or official contacts can foreigners rely on for guidance?
The Real Estate General Authority (REGA) serves as the primary official contact for all foreign property purchases and maintains the authoritative list of licensed agencies.
Prospective buyers should work exclusively with REGA-certified brokerages that demonstrate expertise in foreign investment regulations and the new ownership law. These agencies will be clearly identified on official government platforms before January 2026.
Major international real estate firms with Saudi operations, such as those active in Dubai or other GCC markets, are likely to establish specialized foreign buyer divisions for the Saudi market launch.
Local agencies with strong track records in Riyadh, Jeddah, and emerging zones like NEOM will be particularly valuable for understanding market conditions, pricing trends, and regulatory compliance requirements.
It's something we develop in our Saudi Arabia property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Saudi Arabia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the common pitfalls or mistakes foreigners make when trying to buy in Saudi Arabia?
The most frequent mistake is attempting to purchase property in restricted zones, particularly Makkah and Madinah where foreign ownership remains largely prohibited.
Many buyers misunderstand the January 2026 implementation timeline and try to complete transactions before the law takes effect. No legally binding foreign property purchases can occur until the official start date.
Working with unlicensed brokers or failing to register transactions properly with REGA creates legal risks and potential ownership disputes. Only REGA-certified agencies should handle foreign buyer transactions.
Underestimating the total cost of ownership, including the 5% real estate transaction tax, registration fees, ongoing property taxes, and potential premium charges for foreign owners, leads to budget shortfalls.
Buyers often overlook due diligence requirements specific to Saudi real estate, including title verification, zoning compliance, and understanding the differences between freehold and leasehold ownership structures.
What are typical property prices, rental yields, and growth forecasts in 2025?
Property prices in Riyadh and Jeddah range from SAR 1.2 million to SAR 2.5 million (USD 320,000 to USD 670,000) for modern apartments and residential units.
Luxury properties in premium developments like NEOM or Red Sea coastal projects command prices of SAR 5 million and higher (USD 1.3 million+), reflecting their strategic locations and high-end amenities.
Rental yields in major zones are estimated at 5-7% annually, competitive with other GCC markets and supported by strong demand from expatriate workers and growing local populations.
The Saudi residential real estate market is forecast for sustained growth driven by Vision 2030 development projects, NEOM construction, and increased foreign investment beginning in 2026. Property values in designated foreign ownership zones are expected to see premium appreciation.
Commercial real estate in business districts of Riyadh and Jeddah shows similar yield potential, with office spaces and retail properties benefiting from economic diversification initiatives and increased business activity.
What taxes, fees, and hidden costs should a foreign buyer expect to pay?
Foreign property buyers face a real estate transaction tax of approximately 5% of the purchase price, representing the largest single cost beyond the property price itself.
| Cost Type | Typical Rate | When Paid |
|---|---|---|
| Real Estate Transaction Tax | ~5% of purchase price | At closing |
| Title/Deed Registration Fee | Fixed government rate | At registration |
| Real Estate Agency Commission | 2-3% of purchase price | At closing |
| Legal and Documentation Fees | Varies by complexity | During process |
| Annual Property Tax | Percentage of assessed value | Annually |
| Foreign Owner Premium Fees | To be determined | Ongoing |
| Corporate Income Tax (if applicable) | 20% on rental income | Annually |
How do ownership rights for foreigners compare to those for Saudi citizens?
Foreigners receive freehold or leasehold ownership rights within permitted zones that are similar to Saudi citizen rights, but with important geographic limitations.
Saudi citizens enjoy unrestricted property ownership throughout the Kingdom, including in Makkah, Madinah, and all other areas without geographic or zoning restrictions.
Foreign owners gain full property rights within designated zones, including the ability to sell, lease, mortgage, and transfer ownership to other eligible parties. These rights are legally protected and enforceable through Saudi courts.
Inheritance rights for foreign-owned property follow Saudi law and international agreements, allowing transfer to heirs subject to applicable regulations and zone restrictions.
Foreign owners remain subject to ongoing compliance requirements and potential regulatory changes that may not affect Saudi citizen property owners. The geographic limitations mean foreigners cannot freely relocate their ownership rights to restricted areas.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The new Saudi Real Estate Ownership Law represents a historic opportunity for foreign investors, with implementation beginning January 2026 in major cities like Riyadh, Jeddah, and NEOM.
Success requires careful planning, working with REGA-licensed agencies, and understanding the complete cost structure including the 5% transaction tax and ongoing compliance requirements.
Sources
- EY Global - Saudi Arabia approves new real estate ownership law by non-Saudis
- White & Case - Saudi Arabia approves landmark real estate ownership law for non-Saudis
- Saudi Helpline Group - New Property Law Saudi
- King & Spalding - Saudi Arabia introduces new legal framework for foreign ownership of real estate
- Aqar.fm - 2025 guide to property ownership in Saudi Arabia for non-Saudis
- Greenberg Traurig - Saudi Arabia enacts new real estate foreign ownership law
- HFW - Saudi Arabia's landmark reform on foreign real estate ownership
- Skybound Wealth - Unlocking Saudi: Why the Kingdom's new property law could redefine global investment for expats